Podcasting duo who created popular IT in the D show now operates six studios

Corporate clients and casual podcasters are big area of growth

Podcast Detroit network had 4.5 million listeners in July

Bob Waltenspiel (left) and Dave Phillips, founders of the popular IT in the D podcast, launched Podcast Detroit in 2015 and just opened a sixth studio to accomodate its growth.

When Dave Phillips and Bob Waltenspiel started Podcast Detroit in 2015, running out of studio space never crossed their minds.

As founders of popular podcast show IT in the D, they understood well that everyone has a story, but they underestimated how many people desired a platform on which to tell it. When they built a business model around providing that platform, their podcast startup took off.

In short order, they ran out of space in their original Ferndale studio and moved to a 1,500-square-foot space in Royal Oak, convinced they had more room than they would ever need. However, demand continued to increase, and the stories kept coming. They soon opened another studio in Corktown at the Detroit School of Digital Technology.

Earlier this month, the pair opened their latest podcast outpost — inside the new Detroit Shipping Co. in Cass Corridor — bringing the total number of studios to six, across three locations.

"It's kind of like we built ourselves a bowling alley," Phillips said. "Monday night guys come in and take themselves seriously, and then you have the Friday night guys who just want to get hammered, and there's nothing wrong with that."

Phillips and Waltenspiel entered the podcast game as newbies to the growing medium. The jocular duo launched a podcast called "IT in the D" in 2013 with virtually no experience and no listeners, save for their sympathetic wives, they say. The weekly live broadcast — which includes IT executives and experts, and aims to connect the local IT industry "one beer at a time," according to its website — has reached 20 million listens and consistently ranks among the top technology podcasts on Soundcloud.

Following success of their podcast, they set forth helping others do the same.

Podcast Detroit is a network of podcasts produced in the duo's studios and often distributed through its channels. Its business model is simple: lease studio time to anybody — companies, comedians, sports analysts, man on the street, etc. — for any podcasting purpose — corporate communications, regular shows and one-offs.

Phillips and Waltenspiel are tapping into a growing market. One-third of Americans ages 25-54 listen monthly to podcasts, according to New Jersey-based market researcher Edison Research. This year, 6 million more Americans listened to podcasts each month compared with 2017. The 73 million monthly listeners were a 24 percent increase from 2017.

While advertising dollars from "IT in the D" make up the main revenue source, accounting for 70 percent of business, Podcast Detroit is seeing substantial growth. The network expanded from 3.7 million listeners in April to 4.5 million in July.

There are more than 100 shows on the network ranging from nonprofit outreach and veterans assistance to cyber security and legal advice. Some are traditional, such as the Detroit Red Wings Alumni podcast and that of sportscaster Jim Brandstatter, while others are a bit edgier, like the one created by owners of Detroit lingerie firm Busted Bra Shop.

Costs to record at the studio are $40 an hour for a weekly show and $60 an hour for one-offs. Costs at the Detroit location, which is equipped with newer technology, are $60 an hour for weekly shows and $90 for one-offs. Included in the cost are sound normalization by engineers, hosting and distribution to aggregators such as iTunes, Google Play and iHeartRadio.

Phillips and Waltenspiel started with just one engineer to help run the business. Now, there are an additional six engineering interns and plans to add two or three more for the new studio.

Around 80 percent of clients produce regular shows in the studio. Customers who create the show own the content, and there is a small portion of show owners who have signed up advertisers.

While many sessions are more spontaneous and lax in nature (there's a kegerator and bar in the Royal Oak studios), others are more formal. There are a dozen or so "white-glove" clients, including Cisco Systems Capital Corp. and the Michigan Economic Development Corp., that create audio outside of the network, for distribution through their own channels.

"When it comes to typical, there really isn't," Phillips said.

"There's no rules in podcasting," Waltenspiel added. "I think that applies to every one of the shows."

The duo said studio fees basically cover the cost of operation and its public podcasting enterprise does not turn a large profit. They declined to discuss specific revenue figures for Podcast Detroit or "IT in the D."

Phillips and Waltenspiel spent $5,000 to $6,000 to build out the new 200-square-foot Detroit Shipping Co. studio. Most of the money went toward the task of soundproofing a metal box, they said. A dozen shows have already launched in the new space, and more are on the way.

While no other studios are planned for the immediate future, the duo knows better than to say more expansion isn't in the cards. Growth is expected from corporate circles and casual podcasters, and there will always be more stories for telling.

"This isn't something we ever decided we were going to bank the mortgage on," Phillips said. "It's just cool to give people voices."